CHAPTER 1 1.

1 INTRODUCTION
Strategy is a term that comes from the Greek strategia, meaning "generalship." In the military, strategy often refers to maneuvering troops into position before the enemy is actually engaged. In this sense, strategy refers to the deployment of troops. Str Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. Strategy - "art of troop leader; office of general, command, generalship" and is a high level plan to achieve one or more goals under conditions of uncertainty. Strategy is important because the resources available to achieve these goals are usually limited. STRATEGY IS ABOUT:

Where is the business trying to get to in the long-term (direction?) Which markets should a business compete in and what kinds of activities are involved in such markets? (Markets; scope)

How can the business perform better than the competition in those markets? (Advantage)? What resources (skills, assets, finance, relationships, technical competence, and facilities) are required in order to be able to compete? (Resources)?

What external, environmental factors affect the businesses' ability to compete? (Environment)?

 DEFINITIONS: STRATEGY ACCORDING TO GEORGE STEINER

Some of the definitions in use to which Steiner pointed include the following:

Strategy is that which top management does that is of great importance to the organization.

Strategy refers to basic directional decisions, that is, to purposes and missions. Strategy consists of the important actions necessary to realize these directions. Strategy answers the question: What should the organization be doing? Strategy answers the question: What are the ends we seek and how should we achieve them?

STRATEGY ACCORDING TO HENRY MINTZBERG

Henry Mintzberg points out that people use "strategy" in several different ways, the most common being these four:

1. Strategy is a plan, a "how," a means of getting from here to there. 2. Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a "high end" strategy. 3. Strategy is position; that is, it reflects decisions to offer particular products or services in particular markets. 4. Strategy is perspective, that is, vision and direction.

1.2 LEVELS OF STRATEGY

Strategy can be formulated on three different levels:

CORPORATE LEVEL BUSINESS UNIT LEVEL FUNCTIONAL LEVEL.

CORPORATE LEVEL STRATEGY

Corporate level strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of businesses.

BUSINESS UNIT LEVEL STRATEGY

A strategic business unit may be a division, product line, or other profit center that can be planned independently from the other business units of the firm. At the business unit level, the strategic issues are less about the coordination of operating units and more about developing and sustaining a competitive advantage for the goods and services that are produced. At the business level, the strategy formulation phase deals with: Anticipating changes in demand and technologies and adjusting the strategy to accommodate them. Influencing the nature of competition through strategic actions such as vertical integration and through political actions such as lobbying.

FUNCTIONAL LEVEL STRATEGY

The functional level of the organization is the level of the operating divisions and departments. The strategic issues at the functional level are related to business processes and the value chain. Functional level strategies in marketing, finance, operations, human resources, and R&D involve the development and coordination of resources through which business unit level strategies can be executed efficiently and effectively. Functional units of an organization are involved in higher level strategies by providing input into the business unit level and corporate level strategy, such as providing information on resources and capabilities on which the higher level strategies can be based. Once the higher-level strategy is developed, the functional units translate it into discrete action-plans that each department or division must accomplish for the strategy to succeed.

JET AIRWAYS

ABOUT JET AIRWAYS:

Jet Airways (India) Private Limited is India's leading private airline.

It boasts a market share of about 29percent.

Jet operates a relatively young fleet of Boeing 737 jets and ATR72 turboprops.

It carries about seven million passengers a year.

 Its reputation for punctuality and outstanding service attracts a large.

CHAPTER 1 1.1HISTORY OF JET AIRWAYS

Jet Airways is one of the Indias biggest private airlines. It was incorporate as an Air Taxi operator on April, 1992. It started its commercial airlines business on 5 May 1993. At the beginning it was started with affect of four leased brand 737-300 aircraft and 24 daily flights serving 12 destinations. Jet Airways was set up by Naresh Goyal, who owned Jet air private limited which provided sales and marketing for foreign airlines in India. Jet Airways is one of the strongest competitors for Indian airlines, who had enjoyed monopoly in the domestic marketing since 1953. It acquired its scheduled airline status in January1994, when the air operator act (1953) was repeated. In January 2000, Jet Airways took its decision to buy air Sahara, the only major private airline, making it the biggest takeover in Indian aviation history. Now it becomes the largest aviation industry in India. But the deal feels through in June 2006, however, a modified deal went through in April 2007 and Air Sahara becomes Jet Lite. In August 2008, Jet Lite fully integrates to Jet Airways. Further in October 2008, Jet Airways announced an alliance with Kingfisher airlines that including an agreement on code- sharing on domestic and international flights, common ground handling, join fuel management, joins utilization of crew and sharing of similar frequent flier programmes. Jet airways introduced another low cost air line Jet Konnect with spare aircraft that were earlier discontinued due to low passenger load factor in May 2009. Jet airways Konnect uses the same operator code as jet airways.

1.2 COMPANY PROFILE

Company founder NARESH GOYAL began his travel career in 1967 at the age of 18 as a general sales agent (GSA) for Lebanese International Airlines. In May 1974, he formed his own company, Jet air (Private) Limited, to market other foreign airlines in India. Jet air eventually grew to a network of 60 branch offices. After three and a half decades of monopoly by Air India and Indian Airlines, the Indian government reopened the domestic aviation market to private carriers in April 1989. Goyal set up Jet Airways (India) Private Limited in 1991. Initial investment was $20 million. Through an Isle of Man holding company, Tail Winds, company founder Naresh Goyal (then based in London) owned 60 percent of Jet Airways, with Gulf Air and Kuwait Airways dividing the remaining 40 percent. Jet Airways began domestic flight operations with four new-generations Boeing 737s on May 5, 1993. The first flights were from Mumbai (Bombay) to Delhi and Madras and ten other destinations. Jet Airways aimed to carry seven million passengers by the end of 1993, and to take in first year revenue in excess of $75 million (INR 2.4 billion). The schedule was coordinated with that of Gulf Air to provide convenient connections. Gulf Air assisted the new airline with technical and marketing assistance. The Australian airline Anisette Worldwide also provided engineering expertise, and was the lesser for Jet's first four aircraft. Malaysia Airlines System (MAS) provided technical and flight training and performed maintenance services, while a unit of British Airways educated cabin staff in customer service.

Three of Jet's Boeing 737s was leased from MAS. Jet entered a comprehensive marketing agreement with KLM in 1995.

MISSION STATEMENT

Jet Airways will be the most preferred domestic airline in India. It will be the automatic first choice carrier for the travelling public and set standards, which other competing airlines will seek to match.

Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliable, comfortable and efficient operations.

Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel be a world class domestic airline.

Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achieving healthy, long-term returns for the investors and providing its employees with an environment for excellence and growth.

1.3 FOUNDER OF JET AIRWAYS

NARESH GOYAL (59), the founder Chairman of Jet Airways, Indias premier airline, has over 38 years of experience in the Civil Aviation industry. He is the recipient of several national and international awards. After graduating in Commerce in 1967, Mr. Naresh Goyal joined the travel business with the GSA for Lebanese International Airlines. From 1967 to 1974 he underwent extensive training in all facets of the travel business through his association with several foreign airlines. He also extensively travelled overseas on business during this period. The Prime Minister, Dr Manmohan Singh presented the first NDTV Profit Business Award 2006 to Jet Airways, which was received by the Chairman, Naresh Goyal at a glittering function at Taj Palace Hotel on July 28, 2006. The award, in the aviation category, is to salute the men and women who fuel Indias journey to the fore front of the World Economy.

Chairman, Naresh Goyal was accorded the prestigious TATA AIG Lifetime Achievement Award at the Abacus-TAFI Awards ceremony organized during the TAFI (Travel Agents Federation of India).

1.4 MILESTONES

1993: Jet Airways begins Domestic Operations flying Boeing 737 jets.

1997: Kuwait Airways and Gulf Air sell their stakes in Jet Airways.

1999: A regional network is launched with turboprop aircraft.

2004: The First International Services are started.

2007: Acquired Air Sahara and re-Launched it as Jet Lite.

2009: Launched its own Low Cost Carrier Jet Konnect.

2012: Officially sought approval from Govt. of India to join Star Alliance.

2013: Etihad Airways keen in investing on 27% Shares of Jet Airways.

1.5 AWARDS AND ACHIEVEMENTS

Best First- Class Service in the World award at Business Traveler's 20th annual Best in Business Travel awards. Best Business Class & Best Economy Class at the Business Traveler Awards. Best Program of the Year by Freddie Awards 2007 & 2006. Best Elite Level for the second year in a row, at the 21st Annual presentation ceremony of the Freddie Awards 2008. Best Overall in Entertainment at the Aviation Awards 2010. India's Popular Domestic Airline at the SATTE 2006 Awards. Indias Airline at the World Travel Awards, 2006. Best Technical Dispatch Reliability by Beaver 2002. Best Cargo Airline of North Asia by Cargo Airline of the Year Awards. Best Domestic Airline award for the 1st consecutive year and the 5th time in the past two years at the 18th TTG (Travel Trade Gazette) Travel Awards 2007. Indias Most Respected Company in the Travel and Food Sector by Business world 2003 Best Long Haul Carrier ex-Brussels award at the Tm Travel Awards 2009. Best Eastbound Airline from India and Best domestic Airline in India awards at the Abacus TAFI Awards 2009. Business Traveler's Best Indian Airline Award in London.

1.6 CURRENT SERVICE OFFERINGS

JET PRIVILEGE

BLUE CARD SILVER CARD PLATINUM CARD BLUE PLUS CARD GOLD CARD

JET KONNECT

Launched on 8 May 2009 to close down loss making routes Divert planes to more profitable routes with higher passenger load factors. Started 54 flights a week, rose to 125 flights, target of 160 flights a week

JET ESCAPES

A holiday package to a particular destination

Option to earn JP Miles on each holiday availed December 1, 2011 7.

JET MOBILE

Access information such as flight status, schedules, set alerts or automatically receive flight delay messages

Request for your Jet Privilege account details Search for the lowest fares on Jet Airways

JET VIVA

Interaction forum for women travelers. Modern fashion trends, spa getaways, high end cosmetics December 1, 2011 8.

JET LITE Acquisition of Sahara Airlines Low cost carrier Wider reach

JET KERALA/ JET2INCREDIBLEMP

Tourism packages to Kerala and Madhya Pradesh.

Special offers during summer vacations and New Year December 1, 2011 9.

CHAPTER 2 2.1 SWOT ANALYSIS OF JET AIRWAYS

Jet Airways has come off another difficult financial year, but an extensive cost reduction programme launched in the second half of its latest financial year is bearing some early fruit with a return to profit in the fourth quarter. This SWOT Analysis reviews Jet Airways' internal strengths and weaknesses and its external opportunities and threats:

STRENGTHS:

Has created a good image among the Indian fliers Trusted Airline by the Corporates One of the biggest Indian airline companies with over 13,000 employees

Operations in over 75 Indian cities and over 400 daily flights Top of the mind brand due to excellent operations and marketing It also has international destinations in nearly 20 countries. Jet Airways has been the largest air carrier in India in terms of traffic volume and company assets.

It owns the most updated fleet and competent repairs and maintenance expertise. Its information systems are advanced and compatible with its operation and service. It has a good reputation in both international and domestic markets, quality service and the age-old Goodwill that has still kept it alive in the interests of the rescue operators.

Has financial backing of the Government

WEAKNESS:

Competition from the LCCs and other competitors means market share growth is tough Presence of other airlines on international routes making it difficult to have significant market share.

Jet Airways is operating across broad international and domestic markets competing with world leading giant airlines as well as local small operators. This lack of clarity on the strategic direction largely dilutes its capabilities and confuses its brand within markets.

Low profitability and utilization of capacity.

OPPORTUNITY

Strongly positioned in the International routes Has presence in every segment Increasing number of people opting to travel by airlines

THREATS:

LCCs eating up the market share Rising Fuel Costs and Labour Costs Unfavorable Government policies and aviation regulations.

COMPETITORS ANALYSIS DOMESTIC MARKET INTERNATIONAL MARKET

CHAPTER 3 3.1 MARKETING STRATEGIES:

MARKET SEGMENTATION Market the different classes on board the airline which is the: Economic class Business class Premium class

Focus on the targeted customers who are the within the: Business class Economic class

Also by providing those with promotional activities like: Free tickets Concessional fares for different students Jet lite surprises Corporate deal offers

Their site is also used within their marketing strategy by promoting unique selling techniques like having strong customer relationships and being always on time and accurate when it comes to take off and landing, in order to preserve its outstanding services and keep attracting large groups of people.

3.2

ANALYSIS

OF

MARKETING

STRATEGIES

AND

PUBLIC

RELATION:

Analysis of marketing can be done using external and internal factors. Government policies and completion are including in external factors. An Internal factor means people skills, resources available, customers, production capacity etc. Now the marketing strategies of Jet airways will be done using all these factors.

EXTERNAL FACTORS:

INFLUENCE OF POLITICAL DECISION:

A member of parliament voted on 13th November stated that airline must reduce co2 emission by 10% when they join the EUs carbon cap-and-trade scheme in 2011. Furthermore, it was announced that all airlines flying to and from EU territory should join the scheme in 2011. These airlines must reduce 10% emission. 25% of the pollution permits would be given or auctioned out of airlines. The cost of all co2 permits bought by airlines would be multiplied by two unless the commission develops the legislation to address additional climate impacts caused by nitrogen oxide emission from aircraft. He also said that an efficiency clause states that the aviation sector

can only buy permits from other sectors of it just to improve its own fuel efficiency. These entire announcements have a great impact on Jet airways. They need to build new strategy to promote that they have reduced the emission and the journey on their aircrafts is free from pollution.

ECONOMICAL ISSUE:

Most of the airlines are becoming private because they have to meet certain criteria for a successful. So all these aviation are entering new strategies for their business. Jet airways also need some strategies to compete with them. Moreover, Jet airways are facing the problem of decline in demand, lower yields, recession and high fuel prices. To come over all these problems it needs new strategy. They should try to find something new to increase the demand of their aircrafts. The loss of income for airlines led to higher operational costs, not only due to the lower demand but also due to higher insurance costs which increased after the WTC bombing.

SOCIAL FACTORS:

The travel habits of people are changing day by day. To cope with these habits, Jet airways need new strategy to promote that they are taking care of their customers. They must provide the services according to the taste of people to increase the demand of their aircrafts. Plane hijacking is also a social factor which is a cause of decreasing the demand of aircrafts. Sound pollution also affects the marketing of airlines. So air craft should be free of sound pollution.

TECHNOLOGICAL FACTORS:

The major competitors of Jet airways are using new technologies for the promotion of their product. They increase the use of internet for example Air Sahara provide the facility of online booking and they also auctioned their remaining tickets before two days of timing. Jet airways have an influence of these technological factors in the marketing of their product or services.

COMPETITION:

Jet airways are facing the strong competition from Kingfisher especially in domestic fights. Some overseas markets like British airways, Air Canada also giving a strong competition to Jet airways. To cope with all these airlines, jet airways need a new strategy to promote its services at international level. All the major competitors of Jet airways are using some innovative strategy to increase its popularity. So Jet airways also need new strategy for this.

GUERRILLA MARKETING:

The war of sky is back again and poor Jet Airways is loser again. Last year Jet started a campaign saying We have changed and Kingfisher hijacked the whole campaign by placing a hoarding just above it claiming We made them change. Jet was forced to withdraw the campaign and started a new one with message take off to New York daily Kingfisher again changed its hoarding which stated, They have flown from here to New York. Jet put up an outdoor campaign for JetLite stating, our smile lights up 502 flights to go over 50 cities every day with pictures of their smiling staff. Deccan put up its hoarding next to this, which said, Wed rather you smile), with pictures of their smiling customers. This strategy also put a great effect on the marketing of Jet airways.

OPPORTUNITIES:

Air cargo market is an opportunity for Jet airways. Jet airways have been on the forefront in the transportation and handling of general and special cargo safety and comfort. Jet has a scope in international service and tourism. Tourism is expanding industry in these days and airlines have a wider scope in this industry. THREATS:

Air lines industry has several threats and Jet airways also could not escape from these threats. Strong competition from other airlines is a big threat. Fuel prices are raising day by day because of this fare prices also increasing. As fares are increasing then the demand of customers is going to decrease. This is a biggest threat in the marketing of Jet airways.

INTERNAL FACTORS:

Now some internal factors will be discussed which have an impact on the marketing strategy of Jet airways.

STRENGTHS:

Jet airways are the known as the market driver in the Indian airlines market. It has now the experience of more than 14years. It is the only private airline with international operation. It also has the largest fleet size. All these strengths are very helpful in the marketing of their products. It

has a strong brand values and reputation in the mind of customers about the quality of service. It is the first airline to have new fleeted air buses.

WEAKNESS:

In these days, the ticket price is going to be high. It is also losing its domestic market share. Most of its fleet is going to be old with average age around 4.79 years. Its brand promotion is also weak in the comparison with other airlines. High fares are also a weakness for Jet airways. CUSTOMER SERVICE:

People are not satisfies with the customer service of Jet airways especially in domestic aircrafts. A customer said that the staff did not provide the facility of wheelchair to his parents who are too weak to stand. This type of news will have bad effect on the promotion of its products.

PRODUCTION CAPACITY:

The airline expects higher demand driven by increasing affluence in Asia's third-largest economy, but has no plans of placing big aircraft orders, Naresh Goyal said at a conference organized by the Hotel Investment Forum India. They are expected to increase its domestic revenue by 15% and international revenue by 20% in the next five years. A day after smaller rival Indigo placed a $15.6 billion order to buy 180 planes from Airbus in the largest jet deal in commercial aviation history, Goyal said Jet is following a "relatively modest" aircraft acquisition strategy. This type of strategy is helpful the promotion of their services.

CUSTOMERS:

Jet airways targeted customers are business class and economic class. These targeted customers also have an impact on the market of airline. It does not have attractive strategy for other people of society as there are different types of people in the society and they should make the strategy for all these people its market segment can be divided in to three segment economic class; business class and premium class. It has an impact on the marketing for the other classes of people.

3.3 RECOMMENDATIONS:

After analyzing the marketing and public relation strategies of Jet airways it is realized that Jet airways needs lot of improvements in their marketing strategies. Here some new strategies will be recommended for Jet airway so that it can become one of the strong and most demanding airlines in todays world. If they use these suggestions then they will make their airline more powerful and demanding. Some recommendation for effective market and public relation strategies are listed below.

RECOMMENDATION FOR MARKETING STRATEGY

BOOST CONSUMER CONFIDENCE:

Consumers are fickle lot and are frequently hesitant to buy a product they know little about. To boost the confidence of customers about the services they should use that type of campaign that emphasizes the quality and value of product and services.

LEVERAGE EMOTIONS:

The buying decision is emotional for many customers. Large Corporation spend millions of their money playing on their customers emotions and this works for them. Jet airways also should create a campaign that makes its customers feel themselves, your organization and their decision to buy your product or services.

OVERCOME OBJECTIONS:

The task of overcoming a buyers objections is usually assigned to the sales team. However, a well crafted marketing campaign can work towards overcoming the customers buying obstacles before the walk to the door. A marketing strategy that emphasizes warranties, testimonials, endorsement and other positive reinforcement devices attract new customers as well as existing customers. Jet airways should use this type of marketing strategy.

KNOWING THE COMPETITORS STRATEGIES:

The marketing strategy of competitors is also very important. They should have information about the marketing strategies adopted by their competitors. They should have good knowledge about what are the strategies adopted by others to promote their services and product.

CUSTOMER ORIENTED APPROACH:

Customer oriented approach or technique should be used by Jet airways because customers are one of the main parts of an organization. They should do everything to keep customers in the

mind. They should use strategy which is customer oriented so that they can compete with new entrants in the market.

RECOMMENDATION FOR PUBLIC RELATION

GOOD MEDIA RELATION:

Jet airways should try to have a good relation with media because media plays an important role in the promotion of services or product. If they have good relation with media then media will promote their effective strategy about customers relation.

TO PROVIDE SPONSORSHIP:

For the effective public relation, Jet airways should provide sponsorship. It can be either a team or charity organization. Then people will have a chance to know about Jet airways and the services provided by them.

DELIVER SPEECHES

The managing director, sales manager or other respectable persons in company should deliver speeches to public, time to time, about their recent changes and their upcoming strategies.

PUBLISH ARTICLES:

The organization should also publish some article about their changes and about their customer relation strategy in the popular newspaper or magazines. With these articles people will get knowledge about their strategies and about what are they doing to improve their services. It will increase their good relation with customers.

USE TECHNOLOGY:

In todays predominantly online business world. There is no quicker medium than online for breaking a big news story. Viral marketing and video campaigns are just two of the ways that businesses are reaching a wider audience. Blogging is another vital cog in the online promotion of a business. Jet airways should use this type of technology or their good public relation strategies.

KNOW THE MARKET:

For good public relation it should be known what is happening around you. It will help to act immediately to keep your clients ahead of the game. Jet also should have the knowledge of every technology which give information about the market in which their product or services is going.

CONCLUSION

To conclude it can be said that Jet airways is one of the biggest airline industry at domestic level as well as international level. Its market share is more than any other airline at domestic level. It is very aware about their marketing campaign and their public relation. They are using all the recent technologies and strategies for the promotion of their products and services such as customer loyalty, social awareness, social media strategy and advertisement with famous people. But all these things are not enough in todays world. As new entrants are coming in the market and existing competitor are also using very effective strategies for the promotion of services or products. After analyzing the marketing and public relation strategies of Jet airways it is realized that their marketing strategy is not as effective as their competitors strategy. They need to reestablish their strategy to compete with other airlines. Political, economical and social issues also have an impact on the marketing of products. These are uncontrollable elements. Nobody can control them. So they should make their strategy in such a way that they have a little effect of these uncontrollable elements. As people are very aware about the products or services which

they are buying so the organization should need good public relation. Some recommendations are provided for the effective marketing and public relation strategy. With the help of these suggestions they can improve the marketing of their services and also their public relation. on the basis of the above analysis in comparison to kingfisher, spice jet, Indian airlines and kingfisher; jet airlines is observed to be ranked second after kingfisher as far the service quality analysis is considered. But in case of the customer satisfaction jet is considered to be the satify the customer to the maximum as compared to the other four airlines. In case of the customer loyalty it specify the factors that are mostly considered by the customers while choosing the flight both in case of the business and the leisure class customers.

ARTICLE:
Jet Airways, the largest domestic airline, will merge its no-frills brands JetLite and Jet Konnect and operate under the brand name of the latter. The move to arrest losses and compete with other low-cost airlines had been in the management's mind for some time, but the decision has been taken now. No date has been announced regarding the re-branding exercise.

The airline's spokesperson did not respond to an email query and text messages. A senior executive, however, confirmed the move.

"We see an uptick in corporate business. We will have Jet Airways full service and Jet Konnect. All Boeing 737s of Konnect will have two classes,'' he said.

Currently, the airline operates the two no-frills brands and a full service brand in the domestic sector.

"JetLite does not have a wider passenger appeal. The re-branding would help us improve market share,'' said a source. Re-branding would also help the airline to attract corporate and business traffic, which is migrating to low-cost carrier IndiGo.

According to the Directorate General for Civil Aviation's November data, Jet Airways plus JetLite have a market share of 27.1 per cent. JetLite's share is 7.3 per cent, while the balance comes from Jet Airways.

Financially, too, JetLite's performance has been a matter of concern for the airline. In an interaction with equity analysts in July, the airline admitted JetLite was less immune to "irrational pricing'' or discount pricing, which was being practiced by competitors.

Re-branding would involve change in JetLite livery and reconfiguration of single class Boeing 737s. However, according to a source, initially the airline would use the JetLite planes for Konnect service without undertaking reconfiguration. Sources also indicate there may not be any cross-utilisation of crew and pilots after the brand change.

Jet Airways rebranded the Air Sahara after acquiring it in 2007 for Rs 1,450 crore. Till now, JetLite flies on an Air Sahara operating permit and is a subsidiary of Jet Airways with different books of accounts. Jet and Sahara fought a bitter legal dispute over acquisition price of Air Sahara and the matter is still pending in the Supreme Court.

Jet Airways has a fleet of 101, including 59 Boeing 737s with twin class configuration. JetLite has 18 all-economy Boeing 737s, which are flown on 31 domestic routes and to Kathmandu.

The airline posted a net loss of Rs 713 crore in second quarter of 2011-12, while JetLite, which has considerably smaller operations, lost Rs 100 crore during the same period.

On an operating level, Jet recorded earnings before interest, taxes, depreciation, and amortisation (Ebitda) profit of Rs 172 crore, and JetLite an Ebitda loss of Rs 41 crore.

The breakeven seat factor and average revenue per passenger showed negative trend for JetLite in the second quarter. It was 99.3 per cent and average gross revenue for passenger fell by 15 per cent to Rs 3,160 crore. The trend was similar in the first quarter, including falling average revenue and higher break even seat factor.

Nawal Taneja, professor emeritus, aviation department, Ohio State University, is skeptical about Jet's plans.

Taneja views an airline within airline model is not likely to be successful.

"I do not think an airline within an airline will work. It calls for very different cultures, systems, processes, cost-structures, airport resources, etc. It would be more effective for Jet to focus on its core business model and develop a strategic relationship with an existing low-cost carrier. This strategy is being adopted by a number of international airlines such as Iberia and Vueling in Spain, Malaysia Airlines and Air Asia in Malaysia, and JAL and Jetstar in Japan.''

Aneesh Phadnis in Mumbai Source: BUSINESS STANDARD